The city Department of Housing Preservation and Development is proposing to sell city-owned land at 516 Bergen Street in Brooklyn for $1 to a sponsor that would build about 111 affordable rental apartments, according to a city notice published Oct. 20. A public hearing on the sale is set for Nov. 23 at 10 a.m. by conference call.
What is proposed
The city would sell the property, Block 1143, Lot 25, to 516 Bergen Green Housing Development Fund Company, Inc. The sponsor would build one building with approximately 111 rental units, plus one unit for a superintendent and community facility space. It would also provide about 23 replacement parking spaces for HPD.
The sale falls under HPD’s Extremely Low and Low Income Affordability Program. Under that program, new buildings rent to low-income families earning 30% to 80% of the Area Median Income, and projects may include tiers of units for households earning up to 100% of AMI. Subject to project underwriting, up to 30% of the units may go to formerly homeless families and individuals.
The money
The sale price is the nominal sum of $1 per tax lot. The sponsor would also deliver an enforcement note and mortgage for the rest of the land’s appraised value, which the notice calls the land debt.
Under the program, construction and permanent financing comes from private lenders and public sources including HPD, the New York City Housing Development Corporation, the state and the federal government, and may also include low-income housing tax credits. The land debt or the city’s capital subsidy may be repayable from resale or refinancing profits for at least 30 years after construction is finished. Any remaining balance may be forgiven at the end of the term.
What the notice does not say
The notice does not give the appraised value of the land, the total project cost, the size of any city subsidy, the rents or income tiers planned for this building, or a construction timeline. It also does not name the developer behind the sponsor company.
How to participate
The hearing is Nov. 23 at 10 a.m., or as soon after that as the item is reached. Call 1-646-992-2010 and enter access code 2330 155 3512.
The appraisal, proposed land disposition agreement and project summary can be reviewed by emailing Margaret Carey at careym@hpd.nyc.gov on business days during business hours.
For accommodations such as sign language interpretation, contact the Mayor’s Office of Contract Services at disabilityaffairs@mocs.nyc.gov or 212-298-0734 at least three business days before the hearing.
